Events:
The company released its semi-annual report for 2017. during the reporting period, the operating income was 6.121 billion yuan, an increase of 67.50% over the same period last year. The net profit belonging to shareholders of listed companies was 114 million yuan, down 17.15% from the same period last year. The net profit after deduction belonging to shareholders of listed companies was 79.42 million yuan, an increase of 69.44% over the same period last year, and EPS 0.14 yuan. Of this total, Q2 realized a net profit of 31.57 million yuan, down 38.41 percent from the same period last year and 61.83 percent from the previous month.
Comments:
1. The decline of paste resin profit and non-operating income led to the decline of the company's performance.
The company's 2017H1 realized operating income of 6.121 billion yuan, an increase of 67.50% over the same period last year. From a business point of view, 2017H1's paste resin business income reached 544 million yuan, an increase of 308.64% over the same period last year. This is mainly because the company's new paste resin plant was only put into production in the first half of 2016, so its production and sales volume was still relatively low. At the same time, the company's caustic soda business income reached 217 million yuan, an increase of 316.41% over the same period last year. The operating income of acrylic acid and ester reached 518 million yuan, an increase of 119.49% over the same period last year, mainly due to the good price difference of 2017H1 acrylic acid, the profit was better than that of the same period last year, the company's production and sales increased significantly compared with the same period last year, and the price was also better than that of the same period last year.
2017H1 achieved a net profit of 114 million yuan belonging to listed companies, down 17.15% from the same period last year. There are two main reasons. First, the non-operating income of 2017H1 Company has declined, and the non-operating income of 2016H1 Company has reached 103 million yuan. The non-operating income of 2017H1 Company is only 40.44 million yuan, a decrease of 69 million yuan compared with the same period last year. This also makes the net profit of the company belonging to listed companies decline. However, the net profit after deducting Fei increased by 69.44% compared with the same period last year. Second, the company paste resin business profit decline, 2017H1 paste resin business to achieve a loss of 4.89 million yuan, a year-on-year decline of 26.68 million yuan, we believe that 2017H1 paste resin profit decline is mainly due to the price of raw material calcium carbide significantly higher, resulting in the company paste resin business profit decline.
During the period of 2017H1, the expense rate was 4.71%, which decreased by 3.34pct compared with the same period last year, indicating that the company's expenses were well controlled, of which the management expense rate decreased most obviously, from 4.33% to 2.45%; the sales expense rate decreased by 0.52pct, and the financial expense rate decreased by 0.94pct. Judging from the absolute value of the cost during the period, there is little change compared with the same period last year.
2. The profitability of polyether polyol and acrylic acid and ester business has been greatly improved.
In 2015, the company acquired a 99.33% stake in Shandong Bluestar Dongda by issuing shares. Bluestar Dongda is a leading enterprise in the field of polyether polyols in China, with a polyether polyol production capacity of 250,000 tons per year and 90,000 tons of propylene oxide per year. Profitable. 2017H1 polyether polyol achieved operating income of 1.068 billion yuan, an increase of 6.34% over the same period last year, with a gross profit margin of 16.69%, an increase of 2.4pct over the same period last year, and a marked improvement in profit. 2017H1 Shandong Blue Star East University realized a net profit of 92.44 million yuan, an increase of 32.14 million yuan over the same period last year. The average price of 2017H1 polyether polyol was 12789 yuan / ton, an increase of 22.66% over the same period last year, and the price difference reached 957 yuan / ton, an increase of 137yuan / ton compared with 2016H1's 820 yuan / ton.
The price of 2017H1 acrylic acid and ester increased significantly compared with the same period last year, of which the average price of butyl acrylate reached 8746 yuan / ton, an increase of 64.06% over the same period last year, resulting in a gross profit margin of 6.53% for the company's 2017H1 acrylic acid and ester, which increased 7.91pct over the same period last year.
3. Investment suggestions
It is estimated that the company's net profit for 2017-2019 is 2.27,2.63 and 299 million yuan respectively, and the corresponding EPS is 0.28,0.32,0.37 yuan respectively. The current share price is 6.94 yuan, and the corresponding PE is 25.0,21.6 and 19.0 times, respectively.
Risk hint: calcium carbide prices remain high under the influence of environmental protection, and international oil prices have fallen sharply.
